It is rumored that Colgate (CL.US) plans to sell some personal care brands at a total price of more than 1 billion US dollars

The Zhitong Finance App learned that, according to people familiar with the matter, Colgate (CL.US) is exploring the sale of some of its mass-market personal care brands, including Softsoap, Irish Spring, and Speed Stick. People familiar with the matter said that the consumer goods company is cooperating with investment bank Goldman Sachs (GS.US) to advance this process.

Colgate's personal care business includes deodorants, bar and liquid soaps, body soap, and skin care products. People familiar with the matter added that the company is currently planning to divest only a few brands in the business, and the combined sales price of these brands may exceed $1 billion.

Many consumer goods groups are reshaping and focusing their brand portfolios to better withstand the impact of tariffs, consumers under financial pressure, and rising costs of energy and other inputs — factors that are eroding their profits. Selling some of the assets in a broader portfolio also helps focus resources on core brands.

This year, Unilever (UL.US) has agreed to sell its food business to MKC.US (MKC.US) for $45 billion. After selling more than 20 beauty and personal care brands to Yellow Wood Partners in 2024, the company spun off its MICC.US (MICC.US) ice cream business last year.

Earlier this month, Nestlé agreed to sell its vitamin business to Yellow Wood for around $1 billion. Previously, the company also sold shares in its water business and high-end beverage business to private equity firm Platinum Equity.

According to data provider LSEG, Colgate's market value is about 70 billion US dollars, and its stock price has risen about 11% year to date. In the latest quarter's earnings report, its net sales increased by 4.9%, but organic sales in the North American market fell by 3%.

Colgate CEO Noel Wallace said at the Barclays Consumer Conference this week that the company is facing increasingly fierce competition in the North American market, and a “long-term transformation” will be needed to bring this business to the proper level.

Colgate's entire personal care business (including popular brands and high-end brands) contributed 17% of net sales in 2025, corresponding to net sales of approximately $3.5 billion. Its largest business segment is dental care, including the Colgate toothpaste brand of the same name as its company, which accounts for nearly half of net sales. Other sections include home care and pet nutrition.